Chinese Drugmaker Confirms Chairman Arrested After 1 Yuan Takeover
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Xu Xiren.
PKU Healthcare Corp. Ltd. (000788.SZ) has confirmed that its chairman and president, Xu Xiren, has been arrested.
In a filing Wednesday evening, the Shenzhen-listed drugmaker said it had learned from authorities that Xu was arrested on suspicion of a criminal offense, with the arrest approved by prosecutors in the southwestern city of Chongqing. The company did not specify the charge.
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- PKU Healthcare's chairman and president, Xu Xiren, was arrested in Chongqing over suspected criminal offenses, reportedly embezzlement.
- Xu gained control of PKU Healthcare in late 2024 via a controversial takeover, paying just 1 yuan for its parent and 33 million yuan for 2.39 billion yuan in debt claims.
- Authorities are investigating the alleged diversion of over 100 million yuan by Xu from related companies instead of resolving legacy liabilities.
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Who’s Who
- PKU Healthcare Corp. Ltd.
- PKU Healthcare Corp. Ltd. (000788.SZ) is a Shenzhen-listed drugmaker. Its chairman and president, Xu Xiren, was arrested for suspected criminal offenses, possibly embezzlement. Xu gained control of PKU Healthcare in late 2024 through a controversial acquisition deal, and he is accused of diverting funds from the company and its subsidiaries.
- Southwest Synthetic Pharmaceutical Co. Ltd.
- Southwest Synthetic Pharmaceutical Co. Ltd. is the parent company of PKU Healthcare Corp. Ltd. It was acquired by Xu Xiren's partnership for a nominal 1 yuan, along with 2.39 billion yuan in debt claims for 33 million yuan. The company carried massive legacy issues, including settling over 1,000 individuals and an environmental cleanup, estimated to cost over 1 billion yuan.
- Standard Chartered Bank (China) Ltd.
- Standard Chartered Bank (China) Ltd. is a financial institution where Xu Xiren, the arrested chairman and president of PKU Healthcare Corp. Ltd., once worked. He was employed at a Shanghai branch of the bank.
- Chongqing Dongyu Water Supply Co. Ltd.
- Chongqing Dongyu Water Supply Co. Ltd. is a subsidiary of Southwest Synthetic Pharmaceutical Co. Ltd. Authorities are investigating alleged diversions of tens of millions of yuan from Chongqing Dongyu Water Supply Co. Ltd. into an external account by PKU Healthcare's chairman and president, Xu Xiren.
- Chongqing Changjiang Pharmaceutical Factory
- Chongqing Changjiang Pharmaceutical Factory is a company whose shares were held by PKU Healthcare. Xu Xiren, the arrested chairman and president of PKU Healthcare, allegedly diverted over 40 million yuan from the sale of PKU Healthcare shares held by Chongqing Changjiang Pharmaceutical Factory. This incident is part of an ongoing investigation into Xu's alleged embezzlement.
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What Happened When
- Late 2024：
- Xu Xiren gained control of PKU Healthcare through the acquisition of its parent company, Southwest Synthetic Pharmaceutical Co. Ltd.
- October 17, 2025：
- Xu Xiren was detained at a Shanghai airport as he and his secretary prepared to leave the Chinese mainland.
- November 6, 2025：
- Caixin first reported that Xu Xiren was under investigation by Chongqing police for suspected embezzlement.
- November 13, 2025：
- PKU Healthcare confirmed Xu Xiren's arrest in a filing, stating the arrest was approved by prosecutors in Chongqing.
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